So much for CHIP cards


Old 10-16-17, 05:39 AM
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Join Date: Mar 2007
Posts: 1,341
So much for CHIP cards

A couple of years ago I had a credit card skimmed at a gas station. I immediately switched to a CHIP card because of the added security. Yesterday I got an alert from my CU that questioned a purchase made a thousand miles away. I checked my account on line and found 3 bogus purchases (two for groceries and one gas) totaling just over $300. I called the CU and they told me that an additional 4 attempts had been declined, all in the same area. It seems as if the CU's credit card security software recognizes that a card can't be used in one place and then used at the same time a thousand miles away.

While I will be out nothing (the merchants will probably eat the loss) it really pi**es me off that these crooks are going to get away with it. I'm also not happy that the card is not as secure as it could be since many businesses still have not upgraded to CHIP readers.

I will no longer purchase anything at stores that use swipe readers.
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Old 10-16-17, 05:44 AM
Join Date: Dec 2005
Location: USA
Posts: 424
Well I have news for ya, those chip cards have done nothing to stop fraud. I read a report that CC fraud is still increasing despite the use of the chips. It was also saying that the chip card moves the burden from the bank to the vendor, I'm not sure just how that works though.
Old 10-16-17, 05:59 AM
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Join Date: Sep 2012
Location: USA
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Anyone who has your number etc, can still use the card... chip or not. We all order on line. We still put our info out there in one way or another. Just cause you dont use it with a slider, doesnt mean anyone else with your card number, cant use it.... cause they can. It's the world we live in.
Old 10-16-17, 07:22 AM
Join Date: Nov 2007
Location: MI
Posts: 2,554
Security low, inconvenience high. I've had the machine fail to read the chip and the store will not (can not?) swipe the card or even type the number in to the register. Last week the guy ahead of me in line inserted his card into a reader and when he pulled it out the chip fell onto the counter. I guess his card is toast if nobody will accept the mag stripe or embossed numbers.
Pretty useless if they can be stripped of the card that easily.
Old 10-16-17, 08:44 AM
Join Date: Oct 2008
Location: New England
Posts: 10,022
I wonder if that was his chip or someone else's he had glued onto the card?
My local grocery store keeps getting an error with my chip and the clerk said to try it 3 times and them use the strip.

It was my understanding that the added security associated with the chip came from crooks not being able to duplicate them, thus if the store requires a chip card it has to be authentic, or someone else's chip glued in place. The guess on the glue is just that, a guess.

Old 10-16-17, 10:28 AM
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Join Date: Mar 2007
Posts: 1,341
I did a little research on the chip cards and their security. Ron53 is correct in that credit card fraud is still increasing. However, the chip has made the card very secure for POS charges. Apparently the crooks have shifted most of their fraud to "card not presented" purchases. That's typically on line buys where the vendor doesn't require a CCV number or when the crook already has your CCV number, such as when you hand your credit card to the server at a restaurant and they copy the card number and CCV as they charge your purchase.

One good thing is that several of the restaurants where we've eaten lately present the check and a device (card scanner or in one case a tablet), and you scan the card at your table just like in a store. The server never handles your card. With a chip card the data can't be replicated and reused like with a mag strip.

In the case of my latest problem I called one of the vendors where the card was used. A card was presented and swiped to make the purchase. I use my card frequently to make purchases on the Navy submarine base. All of the purchases except commissary are swipe purchases. I can't remember any recent purchases where I swiped my card. Coincidentally all 3 fraudulent purchases were made within a half mile of the Naval Base in Norfolk. Makes me wonder . . . ?
Old 10-16-17, 04:15 PM
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Join Date: Sep 2013
Location: USA
Posts: 6,031
It was also saying that the chip card moves the burden from the bank to the vendor, I
Just the opposite. If a vendor chooses not to use a chip reader the burden is in the hands of the individual vendor. The banks are urging all businesses to go chipped. If not then you take on the burden of fraud and theft. CW's first paragraph pretty much sums it up.

Since I handle a cash register on almost a daily basis, I get a few customers whose cards do not read correctly. I tell them to contact their banks. But most like to say my machine is a fault (even though 99% of the cards read correctly) or just don't care or are too lazy to go to the bank and get a new card. But they continue to complain.

And also the purpose of the chip and card readers of today is so that the cashier, waiter, clerk, etc... do not handle the card. It's all in the hands of the card holder. That helps absolve the store of any wrong doing.

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